C-A-N-S-L-I-M...Using O'Neil and his methods... Message Board

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Strategies & Market Trends : C-A-N-S-L-I-M...Using O'Neil and his methods...

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To: Joshua A. Gottesman who wrote (134)	10/24/1996 7:10:00 PM
From: Coolcat895	of 344

Here is a new screen of Nasdaq stocks from Investors Business Daily's Monday paper that mixed CANSLIM and some other factors that research into past winners has convinced me can be signs of winners. Stocks had to meet the following criteria: * Relative Strength 88 or higher. * Accumulate-Distribute of A or B * Annual earnings 25 percent or better * Current earnings 40 percent or better. * Sales up 20 percent or better * Forward PE of 52 or less * Price between $10 and $33 * Within 20 percent of high * Spread between 52 week hi and lo at least 2 times but not greater than 4 times. * Float 15 million shares or less * Sector A or B * Plus reading vs. 10 week average Nine Nasdaq stocks met all criteria. They are: * ACT Manufacturing ACTM * Computer Management CMSX * FDP Corp. FDPC * Fresh America FRES * Pomeroy PMRY * SBS Tech SBSE * Signature Resorts SIGR * Supertex SUPX * Total TlUSACm TELU Some of these stocks have moved sharply last month, so be careful about getting in too high...might want to wait for slight pullback. Editor note: I own SBSE but none of the others. My previous list added 500,000 weekly as an additional qualifier but I have removed this because research showed smaller volume stocks actually a better play ... just watch out for those spreads. All these statistics can be found in Wednesday's IBD except sector strength, which is published each Friday. Two others that didnt make list but just missed to look at are Transaction Tech TACT (new issue, missed becuae hi-lo spread not 2 to 1 yet) and Seattle Film FOTO (RS not high enough). Also Equity Marketing EMAK would qualify except Annual Earnings number is 24 instead of 25. There are some others that are close but no cigar ... gotta cut it off somewhere. I will apply O Shaughnessy's criteria as I understand it from "What Works On Wall Street" and give an update in a subsequent post. I went back a year to back test this, using 9-21-95 as a pick date. The results: 23 met all criteria. Davidson Associates bought out by CUC and two others not listed, I assume bought out. Of the other 20, 11 winners, 9 losers...sounds so so...but buy and hold on all even Semitool down 75 percent would have produced 55 percent gain. All the 11 winners have had stock splits--amopng the picks was ABR Info, up 304 percent, Ciber, MRV Communications, Penn National Gaming and Computer Horizons. Several of the losers were up at some point. Have not applied any buy sell rules/use of charts but am lookin gat that also and will report findings soon. I'd like some feedback please.

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